1999 General Studies, all questions

UPSC Prelims 1999 · General Studies

Question 39: Economy and Social Development

The planning process in the industrial sector in India has assumed a relatively less important position in the nineties as compared to that in the earlier period. Which one of the following is true in this regard?

aWith the advent of liberalisation, industrial investments/development have largely been placed within the domain of private and multinational sectors
bWith markets assuming a central place, the role of central planning in many sectors has been rendered redundant
cThe focus of planning has shifted to sectors like human resource development, infrastructure, population control and welfare
dThe nation’s priorities have shifted away from industrial development to rural development

AnswerThe answer is (b).

The given answer is (b): after the 1991 liberalisation, markets rather than the Planning Commission's targets and licences decided much of what industry produced and where it invested, so central planning of industry lost its central role. Option (a) describes who invests (private and multinational firms), while (b) states the wider shift in how the economy is directed. Remember: after 1991 the market, not the plan, steered industry.

Why each option is right or wrong
  • (a) Partly true: private and multinational firms invest more, but this describes who invests, not why planning lost importance.
  • (b) Right. With markets central, central planning of many sectors became less needed.
  • (c) True in part, but it describes where planning now focuses, not why industrial planning mattered less.
  • (d) Wrong. Priorities did not move away from industrial development; the method of steering it changed.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 1999, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.